2 Painless Methods for Repaying Multiple Debts

2 Painless Methods for Repaying Multiple Debts

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Debt is never any fun and that sense of dread you get every time the mail comes makes day-to-day living stressful. Though it might seem that the black hole of debt is never ending and the bills will just keep on coming, there are ways that you can help yourself, regain control of your financial situation and start afresh with a healthier outlook on money and life.


However tired of debt you are, and however frustrated money makes you feel, these methods can be used by anyone to make the future bright again.

Method 1: Consolidation and Payoff

Aside from swearing never to get into such a mess again, you should look into methods for consolidating your debt to make repayment easier and to reduce the amount of interest you are paying. Credit card debt consolidation is a simple way to handle your debts. All you need to do is transfer the balance of each credit card to your new card and then – voila! – you will only need to make one monthly payment.


Before you swap to a new card, do make sure that you check the interest rates. Many card companies will lure you in with a fixed term deal such as 0% interest for a year, which is great unless you can’t pay off the full amount in that time and get automatically switched to a much higher rate. The fine print might be a pain to read, but making sure that you are absolutely clear about the terms and conditions now may save you later on.

Method 2: High to Low Payoff

For some people, especially those with a poor credit rating finding a suitable way to consolidate your credit card debts is tough. This is because, in the view of the credit card companies, you are at a much higher risk of defaulting on your credit card payments so they boost the interest to compensate for that risk. Despite your cries of ‘not fair!’ this is just the way that credit works.


Fortunately, there is a simple way that you can rid yourself of debt without consolidating that should make your repayments feel more ordered.


First, follow these simple steps:


  1. Write down all your credit card debts including the amount owed and the interest rate
  2. Put these debts into order so that the highest interest rate is at the top
  3. Write down the minimum payments you need to make each month
  4. Make all the minimum payments for every debt but start overpaying for the debt listed at the top
  5. Once this debt is repaid, continue making your minimum payments and now overpay on the next debt.


Writing down all your debts will help to focus your mind and set your priorities. Paying off the highest interest debt first will reduce the amount of interest you pay overall, while maintaining minimum payments will keep the others ticking over.


This all sounds very easy written down, but now you need to find the determination to get started and bust those debts!


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